KATHMANDU, Dec 31: With the wedding season just around the corner, traders have started purchasing and stockpiling gold, anticipating a rise in demand for the precious yellow metal from mid-January.
Although the government had reduced the customs duty on imports of gold in mid-November, banks were reluctant to import gold in large quantities due to a dispute over the allocation of gold between the Federation of Nepal Gold and Silver Dealers’ Associations and the Federation of Nepal Gold Silver Gem & Jewellery Association.
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However, after the Nepal Rastra Bank (NRB) formed a task force to resolve this dispute in mid-December, commercial banks started increasing gold imports.As a result, banks imported around 200 kg of gold within a week. According to the Nepal Bankers' Association, four banks imported 100 kg of gold for the Kathmandu Valley and 100 kg for areas outside the valley.
